GOLETA, Calif.--(BUSINESS WIRE)--
Resonant Inc. (NASDAQ: RESN), a designer of filters for radio frequency
front-ends or RFFE, that specializes in delivering designs for difficult
bands and complex requirements, today announced financial results for
the three months ended March 31, 2017 and provided a business update.

Management Commentary

“The momentum we established in 2016 has continued into 2017, as
evidenced by our continued expansion of several licensing agreements
with existing customers,” said George B. Holmes, CEO of Resonant. “These
extensions continue to serve as validation that our customers understand
the value proposition we provide and that our filter designs have the
potential for long term commercial success, retiring risk and setting
the stage for royalty revenue. We ended the quarter with six customers
and over 30 designs under development, most of which are ‘ISN Ready’
designs that are under formal licensing agreements that include upfront,
non-refundable payments and negotiated royalty rates.

“In addition to customer engagement, we remain focused on customer
execution for the specific designs we believe have the highest potential
for revenue in the shortest amount of time. To that end, in February
2017, our first licensee reached the million unit shipment milestone of
pre-production filters in three distinct bands, to four separate OEMs,
which provided an additional milestone, de-risking Resonant’s technology.

“With a continuously growing number of designs under development and
expanding customer pipeline, we are continuing to invest in our core
infrastructure and the expansion of our IP portfolio, as evidenced by
the announcement of our 125th patent milestone.”

Financial Results for the First Quarter 2017

For the three months ended March 31, 2017, Resonant recognized $156,000
of revenue primarily related to upfront and milestone payments from
contracts with customers. This compares to $187,000 of revenue for the
fourth quarter of 2016 and $27,000 in the first quarter of 2016.

Research and development expenses totaled $2.1 million, compared with
$2.4 million for the fourth quarter of 2016 and $1.2 million in the
first quarter of 2016. The sequential decrease was the result of lower
stock based compensation and incentive accruals from the 2016 year end
activity.

General and administrative expenses were flat compared to the fourth
quarter of 2016 and up from $1.8 million in the first quarter of 2016.
The fourth quarter of 2016 included year end stock based compensation
and related incentive accruals, whereas the first quarter of 2017
included lower stock based compensation expenses offset by costs
associated with the senior executive transition.

Net loss in the first quarter of 2017 totaled $4.9 million, or $(0.37)
per fully diluted share, compared with a net loss of $5.2 million, or
$(0.42) per share, for the fourth quarter of 2016 and a net loss of $3.1
million, or $(0.42) per share, for the first quarter of 2016.

On a non-GAAP basis, adjusted EBITDA for the first quarter of 2017,
which excludes non-cash charges for stock-based compensation and
depreciation and amortization, was $(4.0) million, or $(0.30) per fully
diluted share. This compares with non-GAAP adjusted EBITDA for the
fourth quarter of 2016 of $(3.7) million, or $(0.30) per fully diluted
share and $(2.6) million, or $(0.35) per fully diluted share, in the
first quarter of 2016.

Cash and cash equivalents at March 31, 2017 were $13.0 million. This
compares with $9.8 million of cash, cash equivalents and short-term
investments at December 31, 2016.

In February, Resonant raised gross proceeds of approximately $7.5
million in a private placement of 1.6 million units each comprised of a
share of common stock and a warrant. Resonant is using these proceeds to
continue product development efforts and business development
activities, as well as for general and administrative purposes.

Conference Call

Management will host an investor conference call today at 2:30 p.m. PDT
(5:30 p.m. EDT) to discuss Resonant’s first quarter financial results,
provide a corporate update, and conclude with a Q&A from participants.
To participate, please use the following information:

Please dial in at least 10 minutes before the start of the call to
ensure timely participation.

A playback of the call will be available through June 10, 2017. To
listen, call 1-844-512-2921 within the United States or 1-412-317-6671
when calling internationally. Please use the replay pin number 13660154.
A webcast will also be available for 30 days on the IR section of the
Resonant website or by clicking here: RESN
Q1 2017 Webcast.

Note about Non-GAAP Financial Measures

A non-GAAP financial measure is a numerical measure of a company’s
performance, financial position, or cash flows that either excludes or
includes amounts that are not normally excluded or included in the most
directly comparable measure calculated and presented in accordance with
generally accepted accounting principles, or GAAP. Non-GAAP measures are
not in accordance with, nor are they a substitute for, GAAP measures.
Other companies may use different non-GAAP measures and presentation of
results.

In addition to financial results presented in accordance with GAAP, this
press release presents adjusted EBITDA, which is a non-GAAP
measure. Adjusted EBITDA is determined by taking net loss and adding
interest, taxes, depreciation, amortization, and stock-based
compensation. The company believes that this non-GAAP measure, viewed in
addition to and not in lieu of net loss, provides useful information to
investors by providing a more focused measure of operating results. This
metric is an integral part of the Company’s internal reporting to
evaluate its operations and the performance of senior management. A
reconciliation of adjusted EBITDA to net loss, the most comparable GAAP
measure, is available in the accompanying financial tables below. The
non-GAAP measure presented herein may not be comparable to similarly
titled measures presented by other companies.

About Resonant Inc.

Resonant is creating software tools and IP & licensable blocks that
enable the development of innovative filter designs for the RF
front-end, or RFFE, for the mobile device industry. The RFFE is the
circuitry in a mobile device responsible for the radio frequency signal
processing and is located between the device’s antenna and its digital
baseband. Filters are a critical component of the RFFE that selects the
desired radio frequency signals and rejects unwanted signals and noise.
For more information, please visit www.resonant.com.

About Resonant’s ISN® Technology

Resonant can create designs for difficult bands and complex requirements
that we believe have the potential to be manufactured for half the cost
and developed in half the time of traditional approaches. The Company’s
large suite of proprietary mathematical methods, software design tools
and network synthesis techniques enable it to explore a much bigger set
of possible solutions and quickly derive the better ones. These improved
filters still use existing manufacturing methods (i.e. SAW) and can
perform as well as those using higher cost methods (i.e. BAW). While
most of the industry designs surface acoustic wave filters using a
coupling-of-modes model, Resonant uses circuit models and physical
models. Circuit models are computationally much faster, and physical
models are highly accurate models based entirely on fundamental material
properties and dimensions. Resonant’s method delivers excellent
predictability, enabling achievement of the desired product performance
in roughly half as many turns through the fab. In addition, because
Resonant’s models are fundamental, integration with its foundry and fab
customers is eased because its models speak the “fab language” of basic
material properties and dimensions.

Safe Harbor / Forward-Looking Statements

This press release contains forward-looking statements, which include
the following subjects, among others: the status of filter designs under
development, the capabilities of our filter designs, our intended uses
of funds from our capital raising activities, and the potential future
licensing of our designs to existing and new customers. Forward-looking
statements are made as of the date of this document and are inherently
subject to risks and uncertainties which could cause actual results to
differ materially from those in the forward-looking statements,
including, without limitation, the following: our limited operating
history; our ability to complete designs that meet customer
specifications; the ability of our customers (or their manufacturers) to
fabricate our designs in commercial quantities; changes in our
expenditures and other uses of cash; the ability of our designs to
significantly lower costs compared to other designs and solutions; the
risk that the intense competition and rapid technological change in our
industry renders our designs less useful or obsolete; our ability to
find, recruit and retain the highly skilled personnel required for our
design process in sufficient numbers to support our growth; our ability
to manage growth; and general market, economic and business conditions.
Additional factors that could cause actual results to differ materially
from those anticipated by our forward-looking statements are under the
captions “Risk Factors” and “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” in our
most recent Annual Report (Form 10-K) or Quarterly Report (Form 10-Q)
filed with the Securities and Exchange Commission. Forward-looking
statements are made as of the date of this release, and we expressly
disclaim any obligation or undertaking to update forward-looking
statements.

Headquarters

Connect with us

About

The filtering problems of RF front-ends are rapidly becoming so complex that very few companies can solve them. At Resonant, we have developed a fundamentally new suite of technologies we call Infinite Synthesized Networks®, or ISN®, to configure and connect acoustic resonators, which are the fundamental building blocks of RF filters.